India jobless rate dalls to 6.5% in 2025, shows gradual labour market improvement

India’s unemployment rate declined to 6.5% in 2025 from 7.0% a year earlier, signalling a modest easing in joblessness even as broader labour market indicators remained largely stable, according to the latest Ministry of Statistics and Programme Implementation data.

The drop was recorded among educated persons aged 15 years and above under the usual status measure, pointing to improving employment conditions for a key segment of the workforce.

The findings are part of the Periodic Labour Force Survey (PLFS) annual report for 2025, which shows that overall labour force participation and worker population ratios held steady during the year, suggesting continuity in labour market trends rather than a sharp shift.


Urban female unemployment also edged lower to 6.4% in 2025 from 6.7% in the previous year, indicating incremental gains in women’s participation and job absorption in cities.

At the aggregate level, the unemployment rate for persons aged 15 and above stood at 3.1% in 2025, with a marginal decline for men and a stable trend for women. Youth unemployment (15–29 years) also improved, easing to 9.9% from 10.3% a year ago, with both rural and urban segments showing gains.

The report points to a gradual shift in the nature of employment. The share of workers in regular wage or salaried jobs rose to 23.6% in 2025 from 22.4% in 2024, while the proportion of self-employed workers continued to edge down.

Sectorally, employment in manufacturing and services saw an uptick, while agriculture’s share declined, reflecting an ongoing structural transition in the economy.

Wage trends also showed improvement, particularly for women. Nominal earnings rose across categories, with female wages growing faster than men’s in several segments, including self-employment and salaried roles.

Overall, the data suggests a steady but gradual strengthening of India’s labour market, with incremental gains in employment quality and participation, even as structural challenges — including relatively high youth unemployment and gender gaps — persist.